Certified Paraoptometric (CPO) Practice Exam 2025

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What describes the 'Just in Time (JIT)' strategy?

  1. A method for cutting labor costs

  2. A strategy to improve a business return on investment

  3. A technique for increasing inventory storage

  4. A standard method of projecting sales

The correct answer is: A strategy to improve a business return on investment

The 'Just in Time (JIT)' strategy is primarily focused on enhancing the efficiency of operations by aligning inventory management with production schedules. This approach minimizes waste and reduces the costs associated with holding and storing inventory. By receiving goods only as they are needed in the production process, businesses can significantly reduce inventory costs, thus improving overall return on investment. While other options may touch on aspects of business management, they do not capture the core essence of JIT, which is centered on optimizing inventory turnover and improving operational workflow rather than simply reducing labor costs, increasing storage, or projecting sales.